
DraftKings told Congress it does not target problem gamblers via VIP programs, which represent less than 1% of its customer base. The letter outlines mandatory host referrals, random reviews, exclusion lists and no use of AI for predatory targeting. This responds to an Oct. 22 inquiry from Blumenthal, Tonko and Foushee amid stalled federal oversight pushes.
SCCG Take — The response highlights operators' focus on self-managed protocols while resisting data disclosure. Persistent congressional pressure could still drive tighter standards without new federal legislation.
DraftKings has stated that it does not target potential problem gamblers or seek to encourage them to bet more. The company Friday sent a six-page letter to Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee. The response addresses an Oct. 22 inquiry into VIP and rewards programs as part of a broader review of responsible gaming practices across the legal sports betting industry, according to reporting by InGame.
DraftKings wrote that it "does not target anyone based on indicators of potential problem gambling nor does it seek to identify customers most likely to lose and get them to bet more." The letter stresses company efforts to prevent problem gamblers from becoming addicted and defends its promotional programs as designed to improve customer experience.
DraftKings maintains lists of self-excluded customers and those on involuntary exclusion. No promotions go to either group. The company also enforces cooling-off periods and withholds promotions from customers during and immediately after those intervals.
VIP hosts must refer any customer showing signs of problem gambling to the Responsible Engagement Team, with crisis cases prioritized. Hosts are required to randomly select 10 customers per month for reviews that ask whether they are playing "within their means," if gambling affects other parts of their life, and whether they view it as entertainment. Hosts can lose compensation for failing to complete the checks.
Less than one percent of the total customer base is in the Diamond and Onyx tiers that receive personal hosts and exclusive incentives such as site credits, gifts or experiences. Individualized promotion decisions are made by humans. DraftKings does not rely on personalized content from professional athletes or celebrities and is aware of only one Cameo sent to a customer.
The company uses a combination of AI and humans to identify trends but "does not use AI to identify the customers most likely to lose and get them to bet more, nor does DraftKings use AI to target customers based on indicators of potential problem gambling." It declined to disclose average loss or gain figures for rewards program members, citing competitive sensitivity, and instead pointed to its My Stat Sheet tool. Nearly half of customers accessed the tool within a year of its March 2024 launch.
Blumenthal and Tonko co-sponsor the SAFE Bet Act, introduced in October 2024. The proposal would ban gambling ads during live events, require affordability checks and mandate federal approval for states to offer legal sports betting. Industry reaction, including from responsible gaming advocates, was largely negative.
A House hearing titled "The Rise of Sports Gambling on College Campuses" is scheduled for Wednesday. No congressional efforts to impose federal regulation on sports betting have gained traction since the 2018 Supreme Court decision overturning PASPA. Blumenthal has remained vocal on the issue, posting on X: "The meteoric rise in popularity of DraftKings & FanDuel matches an exponential growth in underage gambling. This dangerous double punch threatens a new generation with gambling addiction. We urgently need safeguards in place like my SAFE Bet & GRIT Acts."
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